10th Circuit Overturns ‘Sala,' Finds Shelter Lacked Economic Substance

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The U.S. Court of Appeals for the 10th Circuit overturns a district court finding that the government relied on “little more than speculation” in its fraud case against a taxpayer who avoided federal tax on $60 million in income from stock options through the use of a Son of BOSS tax shelter. In May 2007, a judge for the U.S. District Court for the District of Colorado found that the government's fraud case against Carlos E. Sala was hampered by the absence of apparent indicia of concealment or misrepresentation.